Centerra Gold Inc. (TSX:CG) today has clarified the status of its Mongolian Licenses, in particular, the Company's principal Gatsuurt hardrock mining license which is not on a list of alluvial licenses to be revoked.
In July 2009, the Mongolian Parliament enacted legislation that would prohibit mineral prospecting, exploration and mining in water basins and forest areas in Mongolia and provides for the revocation of licenses affecting such areas (the "Water and Forest Law"). This legislation provides a specific exemption for "mineral deposits of strategic importance", and accordingly, the Company's main Boroo mining licenses are not subject to the law. The Company's Gatsuurt licenses and its other exploration license holdings in Mongolia, however, are currently not exempt.
This week, Mongolia's cabinet announced its intention to initiate the revocation of licenses under the Water and Forest Law on a staged basis, beginning with the revocation of 254 alluvial gold mining licenses. The Company has four licenses on the list of alluvial gold mining licenses that may be revoked. None of these licenses are material to the Company. In particular, the Company's principal Gatsuurt hardrock mining license is not on the list of alluvial licenses to be revoked.
The Company continues its constructive discussions with the Government of Mongolia to resolve uncertainty resulting from the Water and Forests Law and to obtain necessary approvals for the commissioning of the Gatsuurt project.
Source: Centerra Gold Inc.